Tariffs are ‘simply inflationary,’ economist says: Here’s how they fuel higher prices

Tariffs are ‘simply inflationary,’ economist says: Here’s how they fuel higher prices


Key Points
  • Tariffs are expected to raise the U.S. inflation rate in 2025, Federal Reserve chair Jerome Powell said Wednesday.
  • U.S. businesses pass tariff costs on to consumers, both directly and indirectly, economists said.
  • An increase in the inflation rate may be relatively short-lived, if tariffs amount to a one-time price increase, economists said.



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